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Persistent link: https://www.econbiz.de/10014363688
We present an experiment in which extrinsic signals may generate sunspot equilibria. The game has a unique symmetric non-sunspot equilibrium, which is also risk dominant. Other equilibria can be ordered according to risk dominance. By comparing treatments with different information structure, we...
Persistent link: https://www.econbiz.de/10010305959
The Winner s Curse (WC) is a non-equilibrium behavior in common-value auctions involving systematic and persistent overbidding that often results in signi ficant losses. It is one of the most robust fi ndings in laboratory experiments. We developed an auction mechanism with a payment rule that...
Persistent link: https://www.econbiz.de/10010329442
provision. We test our model in a laboratory experiment and confirm its main predictions. Our results have important …
Persistent link: https://www.econbiz.de/10012099071
We examine how leadership affects a dynamic public goods game. Using a setting where cooperation gains can be reinvested, our findings suggest that leadership has a positive impact on final wealth. Somewhat surprisingly, leadership also has a positive impact on reducing inequality within groups...
Persistent link: https://www.econbiz.de/10011892104
The provision of public goods often relies on voluntary contributions and cooperation. While most of the experimental literature focuses on individual contributions, many real-world problems involve the formation of institutions among subgroups (coalitions) of players. International agreements...
Persistent link: https://www.econbiz.de/10010270216
The strive for social esteem is an important motive for pro-social behavior. Many people want to be seen as nice. Recent theories have suggested that the valuation of such esteem depends on the audience. In this study we look at trust and trustworthiness towards people who do or do not identify...
Persistent link: https://www.econbiz.de/10010270227
The `Four-Eyes-Principle' (4EP) (business has to be conducted by at least two individuals, hence four eyes) is seen as one of the most potent measures against corruption although it lacks any theoretical or empirical justification. We show in a laboratory experiment that the net effect of the...
Persistent link: https://www.econbiz.de/10010270756
In a coordination game with Pareto-ranked equilibria, we study whether a sunspot can lead to either coordination on an inferior equilibrium (mis-coordination) or to out-of equilibrium behavior (dis-coordination). While much of the literature searches for mechanisms to attain coordination on the...
Persistent link: https://www.econbiz.de/10010273613
Many situations in the social and economic life are characterized by rivalry and conflict between two or more competing groups. Warfare, socio-political conflicts, political elections, lobbying, and R&D competitions are all examples of inter-group conflicts in which groups spend scarce and...
Persistent link: https://www.econbiz.de/10012287803